Schroder Real Estate buys Bedford retail park

Schroder Real Estate has announced the acquisition of the freehold interest in St. John’s Retail Park in Bedford for £31.8m, reflecting a net initial yield of approximately 6.5%. The property is located approximately 1.5 miles to the south of Bedford town centre and comprises a 130,000 sq ft retail warehouse park let to 12 tenants with an adjoining 11,600 sq ft office building. The retail park produces a rent of £2m per annum which reflects a relatively low average rent of £16 per sq ft. The average unexpired lease term, assuming all tenants break at the earliest opportunity, is 7.9 years with tenants including DSG Retail Limited (24% of income expiring in September 2020) and Homebase Limited (17% of income expiring in May 2024). There is a single vacant unit comprising 5,000 sq ft where terms have been agreed for a new letting. Approximately half of the office building is let to DHL GBS (UK) Limited at £61,000 per annum reflecting a low average rent of £9.50 per sq ft, with approximately half of the remaining vacant space under offer.

SREI : Schroder Real Estate buys Bedford retail park